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Ferro-fluid based smart miniature cooling system is a cooling device which utilizes heat and magnetic field to dissipate heat from the circuit or heat source. Traditional devices have certain limitations in terms of heat, vibration, noise and at the same time they require power from working system to dissipate heat. The developed system is a passive system uses two different liquid cooling systems having carrier fluid as water and kerosene. The product makes use of high heat transfer coefficient and natural circulation caused by the magnetic pump of Ferro-fluid so as to constitute a high performance cooling device which is noiseless and without mechanical moving elements thus having high reliability. The heat transfer can be scaled depending upon the heat load and space constraints